特朗普拒绝延长美伊停火并威胁阿曼，30年期美债收益率创金融危机以来新高

THIS IS BLOOMBERG DAYBREAK: EUROPE. A GLOBAL BOND SELLOFF METALS MARKETS, THE 30 YEAR YIELD FOR THE U.S. CLIMBING TO THE HIGHEST LEVEL SINCE THE FINANCIAL CRISIS AS FEARS AND INFLATION PRESSURES MOUNT. PRESIDENT TRUMP SAYS HE WON'T EXTENT THE EXPIRING U.S. AGREEMENT WITH IRAN AND THREATENED ACTION AGAINST OMAN OVER THE STRAIT OF HORMUZ. AND ANTHROPIC ON TRACK TO GENERATE OVER $65 BILLION AT THE END OF LAST YEAR AS REPAIRS FOR THE -- AS THEY PREPARE FOR THE BLOCKBUSTER IPO.

LET'S BEGIN WITH BRENT CRUDE. WE ARE AT THE HIGHEST IN THE MONTH, PRESIDENT TRUMP SAYING HE'S IN NO HURRY TO BRING THE CONFLICT WITH IRAN TO AN END. 30 DEAL -- 30 YEAR TREASURY DEALS ARE AS HIGH AS THE FINANCIAL CRISIS. THE DOLLAR CONTINUING TO EDGE LOWER, A LITTLE UP AT THE MOMENT BUT HOVERING AROUND THE LOWEST SINCE MAY AGAINST THE GAUGE OF CURRENCIES WE TRACK. THAT SENTIMENT CARRYING ACROSS TO EQUITY MARKETS. TAKING A LOOK AT WHAT WE SEE IN ASIA, ASIA DECLINING THIS MORNING.

EVEN AFTER THE KOSPI HAD BEEN UP EARLIER IN THIS SESSION AFTER THE HOLIDAY AND SOUTH KOREA. EURO STOCKS FUTURES ESSENTIALLY FLAT AS WELL AS WE LOOK AT THE RISK OFF BACKDROP TO THE CONTINUED STALEMATE IN THE MIDDLE EAST. PICTURES SIMILAR WITH THE U.S. STOCKS FUTURES, NEGATIVE SENTIMENT RISES AS OIL SENTIMENT WAYS ON INVESTORS. LET'S LOOK THE DATA POINTS TODAY. WE WILL GET A CHECK LATER THIS MORNING ON THE U.K. LABOR MARKET WITH EMPLOYMENT FIGURES AT 7:00 A.M.

U.K. TIME. WE WILL THEN HAVE A SURVEY OUT OF GERMANY. AND STATESIDE, INDUSTRIAL DATA. A LOT TO GET TO THIS MORNING, GET STARTED. AS WE WERE SAYING, RISING BOND YIELDS HITTING MARKETS ACROSS THE GLOBE THIS MORNING. LET'S SEE HOW THINGS ARE FARING IN A WITH WINNIE HSU IN HONG KONG.

WE ARE SEEING ASIAN STOCKS REVERSING EARLIER LOSSES AND EXTENDING -- REVERSING EARLIER GAINS AND EXTENDING LOSSES AS MACRO FACTORS WEIGHED ON SENTIMENT. WE HAVE OIL PRICES RISING AND GEOPOLITICAL TENSIONS. AS YOU MENTIONED, THE RISING YIELD. THAT IS SPECIFICALLY PRESSURING THE TECH STOCK IN THE REGION GIVEN THE HIGH VALUATION. YOU ARE SEEING JAPAN'S TECH HEAVY GAUGE LEADING LOSSES BY MORE THAN 2% AND ONSHORE CHINA WITH A BIT OF WEAKNESS AFTER YESTERDAY AFTERNOON, THAT SET OF ECONOMIC DATA POINTING TO THE OVERALL WEAKNESS IN THE ECONOMY.

LET'S LOOK AT HOW THOSE NUMBERS SHOW UP. WE ARE SEEING MOST OF THE GAUGES MISTING -- MISSING ESTIMATES AND IT'S A DISAPPOINTMENT, AFTER THE EXPECTATION WAS SET AT PRETTY LOW LEVELS. FOR EXAMPLE, INDUSTRIAL PRODUCTION, RISING JUST 4.5% IN JULY YEAR-OVER-YEAR VERSUS AN ESTIMATE OF 5%. ALSO THE FIRST TIME WE ARE SEEING EASING IN ABOUT THREE MONTHS. SIMILARLY WHEN IT COMES TO RETAIL SALES, 6% VERSUS 1.5%. OVERALL YOU CAN SEE OUTSIDE OF TECH WE ARE SEEING WEAKNESS EVERYWHERE IN THE CHINESE ECONOMY.

THIS IS WHY WE SAW THE YUAN EXTENDING SOME GAINS. BACK TO THE BOND STORY, THE KEY STORY IN TOWN. ASIA BONDS WHETHER IT'S FROM AUSTRALIA TO NEW ZEALAND OR JAPAN, REALLY TRACKING THE LOSSES AND TREASURIES. FOR JAPANESE BONDS WE ALSO HAVE A PROBLEM WHEN IT COMES TO LOCAL FISCAL CONCERNS AS WELL AS THE BANK OF JAPAN, THEY WILL PROBABLY HAVE TO RAISE RATES GIVEN THE WEAKNESS IN THE END AND THE 10 YEAR YIELD HOVERING AROUND THE HIGHEST LEVELS IN ABOUT THREE DECADES AS INVESTORS CONTINUE TO WATCH OF THE 3% AS THE DANGER ZONE.

WE ARE SEEING MORE POSITIVITY WHEN IT COMES TO THE FIVE YEAR AND THAT'S COMING AFTER A BOND AUCTION EARLIER TODAY SHOWING THE STRONGEST DEMAND SINCE JUNE LAST YEAR. POTENTIALLY SHOWING HOW INVESTOR APPETITE IS STILL THERE WHEN IT COMES TO HIGHER YIELD. CHAD: WINNIE, THANK YOU. OIL PRICES CONTINUE TO CLIMB AS PROSPECTS FOR A NEAR-TERM RESOLUTION IN THE WAR WITH IRAN RECEDE, AS PRESIDENT TRUMP RULES OUT EXTENDING TALKS WITH IRAN.

HE AGAIN FLOATED THE IDEA OF THE WATERWAY AS AN AMERICAN TERRITORY.

WE CONTROL IT WITH THE BLOCKADE. WE CONTROL IT WITH THE BLOCKADE. I LIKE THE IDEA OF DECLARING IT AN AMERICAN TERRITORY. CHAD: ABEER, THE TRUCE BETWEEN THE U.S. AND IRAN, BOTH ARE TALKING ABOUT CONTROL WITH THE STRAIT, WHERE DO WE GO WITH THE TALKS? ABEER: TECHNICALLY THERE ARE NO WIDER TALKS HAPPENING BETWEEN IRAN AND THE UNITED STATES. THERE ARE TIT-FOR-TAT REMARKS HAPPENING BETWEEN PRESIDENT TRUMP AND OFFICIALS.

PRESIDENT TRUMP MENTIONED HE DOESN'T WANT TO EXTEND THE TRUCE AND IT TECHNICALLY ENDED YESTERDAY. PRESIDENT TRUMP SAID THIS WAS MEANINGLESS SINCE IRAN BROKE THE AGREEMENT. WE HAVE DISCUSSIONS BETWEEN OMAN AND IRAN, ESSENTIALLY FOR A MECHANISM TO REOPEN THE STRAIT OF HORMUZ IN SOME FASHION. WE DON'T KNOW THE INTRICACIES OF THAT DEAL. THAT DEAL IS IN THE FINAL STAGES OF COMING TO FRUITION. WE KNOW IT'S BEEN DELAYED BECAUSE OF THE COMPLEXITIES ACCORDING TO IRANIAN OFFICIALS THAT HAVE SAID IT'S UNDER DISCUSSION AND IT IS HAPPENING.

IN SOME FASHION TO FIND A PATHWAY IN THE STRAIT OF HORMUZ TO GET A TRICKLE OF OIL THROUGH THE WATERWAY. WE ARE STILL SEEING ATTACKS IN THE WATERWAY. THE U.K. INDIO SAID IN THE EARLY HOURS THERE WAS A CASUALTY, A VESSEL STRUCK IN THE STRAIT OF HORMUZ. WIDER NEGOTIATIONS ARE TAKING PLACE OR SET TO TAKE PLACE OR A RETURN TO DIPLOMACY BUT THE HOSTILITIES IN THE STRAIT OF HORMUZ CONTINUE TO HAPPEN AND AND OTHER WATERWAYS THEY CONTINUE TO HAPPEN AND IN PARTS OF THE MIDDLE EAST.

NOT A LOT OF CLARITY ABOUT HOW SOON WE WILL RETURN TO DIPLOMACY. CHAD: DO WE HAVE ANY SENSE OF HOW MUCH OIL IS GETTING THROUGH THE STRAIT? IT IS HARD TO KNOW HOW MUCH IS GETTING THROUGH BUT IS THERE ANY SENSE OF VOLUME OR IF IT'S CHANGED IN RECENT DAYS? ABEER: IF YOU WERE TO GO BY THE WORDS OF THE U.S., IT'S DIFFERENT FROM WHAT IRAN SAYS. THE ENERGY SECRETARY DID SAY THE U.S. MILITARY IS BRINGING OUT EIGHT OR 9 BILLION BARRELS PER DAY COMPARED TO ZERO FOR IRAN BUT IRAN SAYS THAT'S NOT TRUE.

YOU HAVE A LOT OF ESTIMATES ABOUT HOW MUCH OIL IS COMING OUT . EITHER IT'S COMING OUT WITH VESSELS GOING DARK. ESPECIALLY ABLE TO CROSS THROUGH THE WATERWAY. WITHOUT THE THREAT OF THE U.S. OR IRAN. WHATEVER NUMBER OF OIL BARRELS GOES THROUGH THE WATERWAY IS A TRICKLE OF WHAT IT NORMALLY IS. THAT'S WHY YOU SEE BRENT CRUDE STILL AFFECTED. IT'S SETTLING ABOVE THE $90 TWO -- $90 PER BARREL. IN A NUTSHELL, THE NUMBER OF OIL BARRELS THROUGH THE STRAIT OF HORMUZ IS STILL NOWHERE NEAR THE LEVELS WE HAD PREWAR.

CHAD: OUR ANCHOR ABEER OMAR, THANK YOU. 30 YEAR U.S. YIELDS HAVE CLIMBED TO LEVELS NOT SEEN SINCE 2007 AS CONCERNS OVER GOVERNMENT FINANCES AND ELEVATED ENERGY PRICES HIT BONDS ACROSS THE GLOBE. IT HAS BEEN WARNED ABOUT DEBT LEVELS AND BOND VIGILANTES MIGHT PUSH THE PANIC BUTTON. LET'S BRING IN MARKER AND FIELD. IT'S THERE ANYTHING THAT CAN -- LET'S BRING IN MARK CRANFIELD. IS THERE ANYTHING THAT CAN BE DONE? MARK: IT'S A VICIOUS CYCLE.

YOU MENTIONED THE 30 YEAR YIELD, WE HAD AN AUCTION LAST WEEK. THEY HAD TO PRODUCE THE HIGHEST. WE HAVE 20 YEAR COMING UP. THE UNPOPULAR PARTS OF THE CURVE , NOBODY PARTICULARLY LIKES 20 YEARS AND IT WILL BE DIFFERENT FOR AUCTIONS AND IT WILL WEIGH ON WHAT YOU SEE IN THE MARKET TODAY. YOU'VE GOT A SITUATION WHERE A TRUCE IN THEORY HAS COME TO AN END. PROBABLY MORE IMPORTANTLY FOR THE UNDERLYING ECONOMY, WE SEE SPREADS BETWEEN CRUDE, DIESEL, CRUDE AND GAS OIL, THOSE SPREADS ARE WIDER AND WIDER.

THE DIESEL IS AFFECTING TRANSPORTATION COSTS IN THE U.S. AND AROUND THE WORLD. TRADERS CAN SEE ALL OF THESE EFFECTS GOING THROUGH THE OIL MARKET AND INTO YIELDS. EVEN THOUGH THE FED SEEMS TO BE SITTING ON THE FENCE, THEY HAVE A MEETING AT SEPTEMBER, DO INTEREST RATES NEED TO GO UP IN THE U.S.? THEY HAVE TO REVISIT THAT IN SEPTEMBER. CRUDE PRICES, AS YOU SAID, BACK ABOVE $90, IT'S A VICIOUS CYCLE AT THE MOMENT AND NOBODY SEEMS TO KNOW HOW TO BREAK IT.

CHAD: HOW BIG A ROLE IS THE AI STORY PLAYING? TECH COMPANIES ARE RAISING HUGE SUMS OF MONEY AND GIVING INVESTORS OTHER OPTIONS OF WHERE TO PLACE THEIR MONEY. HOW IS THAT PLAYING INTO THE BOND MARKET? MARK: WE'VE GOT TREMENDOUS COMPETITION FOR INVESTOR MONEY AT THE LONG END OF THE CURVE ESPECIALLY. IF IT WASN'T ENOUGH THE U.S. AND EUROPEAN GOVERNMENTS AROUND THE WORLD WERE TR